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Style factors capture well-known and persistent drivers of return resulting from structural, behavioral, or risk premia differences within and across asset classes. These economic rationales in style factors driving historical returns have been grounded in academic research.

Investment process

The investment process pursues diversified returns by drawing upon on a deep understanding of the various style factors. Portfolio construction avoids over-dependence on any one source of return or over-reliance on skill in forecasting market conditions.

This material is provided for educational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are subject to change. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Indices do not include fees or operating expense and you are not able to invest directly in an index.

This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns, and proposed or expected portfolio composition. Moreover, any historical performance information of other investment vehicles or composite accounts managed by BlackRock, Inc. and/or its subsidiaries (together, “BlackRock”) included in this material is presented by way of example only. No representation is made that any performance presented will be achieved by any BlackRock products or strategies, or that every assumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example. Past performance is no guarantee of future results.

An investment in any strategy referred to herein involves a high degree of risk, including the risk that the entire amount invested may be lost.

There can be no assurance that performance will be enhanced or risk will be reduced for strategies that seek to provide exposure to certain quantitative investment characteristics (“factors”). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a strategy may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could results in losses.

Asset allocation and diversification strategies do not guarantee investment returns and do not eliminate the risk of loss.

Strategy details vary depending on specific implementation and/or investment vehicle. Strategy availability may be limited to certain investment vehicles; not all investment vehicles may be available to all investors. Please contact your BlackRock representative for more information.

This material is not intended to be a recommendation or advice by BlackRock. If this material were construed to be a recommendation by BlackRock, BlackRock would seek to rely on Department of Labor Regulation Section 2510.3-21(c)(1). As such, by providing this material to you, a plan fiduciary that is independent of BlackRock, BlackRock does not undertake to provide impartial investment advice or give advice in a fiduciary capacity. Further, BlackRock receives revenue in the form of advisory fees for our mutual funds and exchange traded funds and management fees for our collective investment trusts.

The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.

FOR INSTITUTIONAL, PERMITTED CLIENTS AND FINANCIAL PROFESSIONAL USE ONLY. THIS MATERIAL IS NOT TO BE REPRODUCED OR DISTRIBUTED TO PERSONS OTHER THAN THE RECIPIENT.